Monday, 18 March 2013

The Cyprus 'Bailout' And Germany - Bailout" Η Κύπρος και η Γερμανία

18 months ago, we said to watch Cyprus, as it would be the next battle ground.And so it has come to pass, the German-dominated EU is overstepping its own hideous track record, and demanding that Cyprus raid its own citizen's accounts - in nothing short of an act of theft.As ever, there is more than meets the eye.It has been Germany all along, pushing for Cyprus to fail.Germany's plan to crash Capitalism is coming along nicely, via attacks on the systems of credit and insurance.Cyprus is the soft underbelly of Capitalism. As a (now former) safe haven for banking, it is a perfect place to attack in order to destroy trust in banking, and start a chain reaction.This really kicked into high gear last year, when the German intelligence agency BND started feeding European news wires with propaganda about the content of Cypriot accounts (Russian mafia etc).This was preparing opinions to be harshly critical of Cyprus, much as Germany had already done with Greece, so that the German (and many other European) people support harsh policies aimed against Cyprus, and Greek-Cypriot people (Untermensch to the German elite).The Cypriot President, who recently promised his electorate that deposits would never be touched, was stitched up by German Chancellor Merkel during negotiations.Angela Merkel insisted on the bank deposit raid in return for German bailout support. At an election rally, she said; "anyone having their money in Cypriot banks must contribute in the Cypriot bailout. That way those responsible will contribute in it, not only the taxpayers of other countries, and that is what’s right."

Of course it is not the 99% of Cypriot citizens that are responsible for the country's economic problems, but membership of the Euro. Classic 'wife beater' method of blaming the victim. It is fascinatingly harsh of Merkel to take the view 'all Cypriots should pay'. Germany got away without 'all Germans should pay' and they murdered millions of people!Many qualified economists are baffled at this action, which risks damaging the European financial system further. The fact that the deposit raid flies in the face of the rule of law, and specifically deposit insurance, is key. Deposit insurance is there to prevent bank runs. As Germany has insisted on going against this insurance, one can only assume the real object of this exercise is to;

Fatally undermine confidence in the safety of money being held in banks.

Destroy trust in deposit insurance - a major pillar of capitalism.

Further infect the other troubled European economies.

Prove legal authority of the ECB for supervision of the banking system (after moving supervision from national governments to the European Central Bank in Frankfurt). They will claim they now have all the legal authority they need to interfere directly in the banks of the 17 countries that are part of the eurozone.

Delegitimise Capitalism in the minds of people.

Break the taboo and set the precedent of the EU helping itself to citizen's bank accounts!

Economist Eamonn Fingleton said the bank raid could be "worse than Lehman Brothers" – a reference to the botched response to the collapse of the US bank in 2009.They have opted for a ‘solution’ that amounts to probably "the single most inexplicably irresponsible decision in banking supervision in the advanced world since the 1930s" he said."They have weakened – perhaps catastrophically – the principal pillar sustaining modern banking.This pillar is deposit insurance. This raises questions about deposit insurance throughout the EU and invites runs on banks not only in the most financially-challenged nations such as Greece and Spain but even in Italy and France."Sebastien Galy, of the bank SocGen, agreed the move could be the ‘trigger’ for a new eurozone crisis: "It breaks a cardinal rule – namely, the public trust on which money relies."And that is exactly what it is meant to do.Germany sees Capitalism and international finance as the system which needs to be destroyed and countered, in order to remove Anglo-American influence and take their 'destiny' as the lead country - with the whole of Europe as one command economy at their disposal.Its the same as WW2, except without them outwardly blaming Jews for the 'conspiracy' of Capitalism and finance. Yet...